Cube the pancetta into small chunks. In a heavy skillet, warm the olive oil over low heat and add the pancetta to the pan. Toss the pancetta in the oil until it becomes golden brown and lightly crisp, about 5 minutes. Add the cabbage to the pan and raise the heat to medium. Mix the cabbage with the pancetta, add the water, cover the pan and let steam for 3-4 minutes, until the cabbage is wilted but still firm. Uncover, add the cream, butter, nutmeg, salt and pepper to taste (be careful with the salt, as the pancetta may be quite salty) and toss together for 2-3 minutes until the cream reduces a bit and coats the cabbage like a sauce. You may serve this with boiled potatoes, if you like.